There are five main functions to show how consumers choose mobile phone in terms of decision making, and all the information have been found will be interpreted by the structure which is following decision making; it will start from problem reputation to information search, and then straight to evaluation of Alternatives, product choice and results. Moreover, the recommendations which have been concluded will also show on the conclusion
Mobile mobile market is growing quickly, and the expectation amount of populace of mobile phone user is 5 billion in 2010 2010. Nowadays, cellular phone market is one of the most competitive markets on the globe. Therefore the purpose of this review is to study consumer habit in terms of mobile phone.
The main idea of this review is how consumers choose their mobile phone in terms of decision making, and there are five principal techniques will be reviewed. Firstly, marketer begins with how consumers discover the difference between ideal talk about and actual state, and then while consumers proceed to search the information, the ways the way they search information from inner and external resources will also be discussed. Secondly, the key factors of analysis alternatives which have been found will show on this step and then check out product choice. Finally, marketer will summarize all the points and indicate the primary findings to make suggestions for mobile phone business in the future.
Background of product
In 1973, the first cellular phone on the globe has been developed by Motorola, it called DynTAC 8000X, but it was too heavy and big, and the purchase price was almost $4000. However, this very first mobile phone was not appeared in the market until a decade later. Later on, Nokia, a handset manufacturer from Finland, launched their first mobile phone in 1982, and then your competition between Motorola and Nokia has been started out and continuing almost 2 decades. From 2000, the technology of smart phone was rapidly expanded. This means the modern of cellular phone is coming; a whole lot of cellular phone manufacturers sign up for this competition, for example, Blackberry, Sony Ericsson. Nokia and Motorola, they are not the only choices in this mobile market from that point in time. The critical stage of mobile phone, it could be 2007, because Apple and HTC launched their smart telephones, which are iPhone and HTC touch. iPhone and HTC touch are the first mobiles cell phones that are mainly controlled by touch screen, plus they have a whole lot of functions on it.
Nowadays, cellular phone is a competitive market, regardless of the functions, designs, and price; the designs between companies are very different from one another, quite simply, it means consumers have a great deal of choices. Regarding to commercialwireles. com (2010), below is the cellular phone market share in May, 2010
Objectives of the study
The number of mobile phone users is over 4. 6 billion up to now, and it is still growing quickly. It is expected to reach five billion within 2010(Geneva 2010). Cellular phone is a mature and competitive market. Therefore, it is a crucial concern for marketer to understand how consumers choose mobile phone.
In this research, marketer will observe your choice making framework to attempt this project, to be able to grasp consumers' behaviour how consumers make their decision of shopping for a cellular phone.
The first process of the buyer decision-making framework is problem popularity which is generally caused by a significant difference between a great state and an actual talk about (Girish 1992). When consumers perceive there is a problem with their current product need to be solved, which problem could be simple or sophisticated, rational or irrational. Matching to Solomon, a concept has been proven on his analysis, which is
Ideal state Ideal
Actual state Actual
NO problem Opportunity reputation Need recognition
Solomon, M. R. , Russell-Bennett, R. , Josephine previte. , 2010. Consumer Behaviour: buying, having, being, 2nd Edition. Pearson Australia. , page237
In the other words, there are several factors behind problem recognition of products could be happened, for example, dissatisfaction, out of stock, and new needs or needs.
In conditions of mobile phone, nowadays cellular phone isn't just a device, but also a sign of vogue. Some consumers recognize their cellular phone out of vogue as a challenge, Regarding to Ling & Yttri(1999), cellular phone is not just a device for communication but also ways to express sense of self-character. Consumers change the wallpaper and placed the unique ring tones on their mobile phones because they need their mobile phones to show out their self-character.
Consumers can have various known reasons for them to understand that their cellular phone got problem have to be solved. As mentioned, those reasons could be logical or irrational. For example, a new mobile release, current mobile phone is not functioning well, unhappy with current cellular phone, or just needs a new mobile.
Once consumers recognize that current product is much less it ought to be, it means a difficulty has been accepted, and then consumers will proceed to search great information in order to resolve it. This technique is named information search, if people embark on this process by buying something, it can also be called pre-purchase search. Information search can be divided into two types: interior and external search. Internal search is consumers search information from their own memory space, because consumers may curently have some limited understanding of product which they plan to buy, or they curently have previous experience about similar product. External search is consumers obtain information from family, friend, and advertising by companies.
Mobile telephone is an adult market; the amount of mobile phone users has already reached 4. 6 billion around the world (Genev 2010). Therefore, almost all of consumers have previous experience of mobile phone, so they already have some degree of understanding of cellular phone. In conditions of exterior information, there are ways for consumers to get information, such as journal, Tv set commercial, and internet. Especially the internet, internet is convenient today, consumers can search information easily through it; for example, there are extensive amount of mobile phone websites on internet, such as Allphones (allphones. com. au) in Australia, consumers can compare all the mobile phone's features, price, and rank onto it.
Evaluation of Alternatives
"A lot of your time and effort that switches into a purchase decision occurs at the stage when a choice must be made from the available alternatives" (Solomon 2010:243).
In this technique, consumers' purchase intent is already very good, only the brand's choice still hesitating in their brains. Those brands could be divided into three types: Evoked set in place, Inert establish and Inept place. Evoked set is defined as brands which are in consumers brain with positive image, and Inert collection is unlike Evoke place, it is thought as the brands are negative and already beyond consumers choice. Inept set in place is defined as the brands haven't any characteristic, consumers perhaps won't choice them. (Solomon 2010:243-246).
Below is a simple platform example, in terms of cellular phone: (Cathy, Genevieve, Pettigrew 2007)
In conditions of cellular phone, if consumer is content with the brand of their current mobile phone, they could still look for another of the same brand's new products, if not, they will choose others. "Brand awareness is expressed as the power of the brand's living in the consumers' minds which is an important area of the brand equity". (Pappu, Quester and Cooksey 2005). For example, mobile phone companies slogans, such as individuals technology by NOKIA, Hello Moto by Motorola. The goal of those slogans is to develop their own brand image, this means friendly, mankind. Therefore, brand's image is the critical factor when consumers take into account the alternatives.
"Once the relevant options from a category have been built and evaluated, a choice must be produced between them" (Solomon 2010)
Evaluative criteria look on the step, some rivalling options are in consumers' heads. For example, there are a few supplementary features between those particular products. Consumers must choose some of these features; those features are called determinant qualities.
In terms of mobile phone, similar characteristic devices sometimes come with different secondary features, For instance, two same price cell phones; one comes with top quality camera, but the other one comes with nicer audio system. Consumers generally will choose one of those determinant characteristics as their purchase decision, because of these products are already on the list.
Once the merchandise has been chosen, the purchase behaviour will happen. Consumer will check out pay the product which they mainly evaluated, and take it home and revel in it. After consumer experience this new product, another purchase may happen in the future.
In conclusion, the populations of men and women who use cellular phone today become tremendous amount. As a result of this big market, every company must have competitive edge more than other cellular phone companies. Therefore, it is better for a company to pay more attention on consumer behavior of decision making in terms of mobile phone. In this study, researcher has discovered three main characteristics of cellular phone customer, first one is some consumers buy new cellular phone because of self-recognized current cellular phone has gone out of vogue; second is consumers mainly search information of mobile phone via internet; third is brand image is one of the most crucial factors affects consumers to choose a fresh cellular phone. However, research would like to suggest cellular phone companies could work on build brand image and make more advertisement on internet, anticipation this may be helpful in their future business.
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